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Exchange of Notes

I have the honor to refer to the Income Tax Convention between the Government of the United States and the Government of the Polish People’s Republic signed today in Washington. During the course of negotiations, the question arose as to the effect of the Convention upon the income taxes imposed by the states of the United States.

In connection, I should like to note that the individual states of the United States each have Constitutional authority to impose taxes within certain limitations. In light of this authority, the Government of the United States has not considered it appropriate to enter into income tax conventions which restrict or limit state taxes except to prohibit any state from imposing discriminatory taxes.

A review of the tax laws of the states of the United States indicates that these laws generally operate in such a manner that a resident of Poland entitled to a reduced rate of tax or to tax exemption under the Convention would not be subject to tax by the individual states. This is also the case as concerns Polish enterprises engaged in international traffic of ships or aircraft. Nevertheless, I should like to assure you that if necessary, the tax authorities of the United States will use their best efforts to secure exemption from any income taxes that may be imposed by any of the states of the United States on such shipping or airline enterprises.

Accept, Excellency, the assurances of my highest consideration.

Henry A. Kissinger,

Secretary of State of the United States of America.

II

(Translation)

Embassy of the Polish

People’s Republic

Washington,

October 8, 1974.

His Excellency,

Henry A. Kissinger,

Secretary of State of the United States of America

Excellency:

I have the honor to acknowledge the receipt of your letter dated October 8, 1974, which reads as follows:

[See I]

I have the honor to acknowledge the receipt of the assurances contained in the above text.

Accept, Excellency, the expression of my highest consideration.

Stefan Olszowski,

Minister of Foreign Affairs,

Polish People’s Republic

2015-04-23

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